[Biz View] Gas Station Gasoline Price Increase Slows... How Much Will Prices Drop with Fuel Tax Cuts?

National Average 1787.9 Won
International Oil Prices and International Gasoline Prices Turn Down This Week

International oil prices have reached their highest level in seven years, leading to a significant rise in domestic fuel prices as well. In response, the government plans to reduce the fuel tax for the first time in three years. The most likely timing is the 26th, when the Central Emergency Economic Countermeasures Headquarters meeting will be held. A gas station in downtown Seoul on the 21st. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] Gasoline prices at gas stations have been rising for seven consecutive weeks, but the rate of increase is slowing down. International oil prices and international gasoline prices turned downward this week. When next week's fuel tax reduction is fully implemented, the price of gasoline per liter will decrease by 164 won from the current level.

According to the Korea National Oil Corporation's oil price information service OPINET on the 6th, the nationwide average gasoline retail price at gas stations in the first week of November was 1,787.9 won per liter, up 25.2 won from the previous week.

Recently, the weekly increase in gasoline prices per liter has grown every week from 0.8 won → 1.9 won → 8.7 won → 28.3 won → 45.2 won, but following last week's 30.3 won, the upward trend appears to be weakening.

By region, Seoul, the area with the highest price, recorded a gasoline price of 1,868.8 won per liter, up 28 won from the previous week. Jeju followed at 1,855 won. Busan, the region with the lowest price, recorded 1,764.9 won per liter, up 22.8 won from the previous week.

By brand, GS Caltex gas stations had the highest gasoline price at 1,797.6 won per liter, while discount gas stations were the cheapest at 1,755.8 won per liter.

The nationwide diesel retail price at gas stations rose 24.2 won from the previous week to 1,585.1 won per liter.

International oil prices, which had been continuously rising, have turned downward. The average price of Dubai crude oil, the benchmark for oil imported into Korea, was $82.4 per barrel, down $0.8 from the previous week, and the international gasoline price was $97.7 per barrel, down $1.7 from the previous week.

The Korea National Oil Corporation analyzed, "This week, international oil prices are declining due to factors such as the strengthening of the US dollar, an increase in crude oil inventories, and China's announcement of plans to release strategic reserves."

Meanwhile, the government decided to reduce fuel taxes on gasoline, diesel, and LPG butane by 20% for about six months from November 12 this year to April 30 next year.

Assuming the 20% fuel tax reduction is fully reflected in consumer prices, gasoline prices will decrease by 164 won per liter and diesel by 116 won per liter. The government estimates that a gasoline vehicle driven 40 km per day could save about 20,000 won per month.